Case Note & Summary
The dispute concerned grant of Nazool land in Bassi Gujjran, Tehsil Samrala, District Ludhiana to a Scheduled Caste allottee. The Collector, Ludhiana, granted 25 kanals 4 marlas along with other Nazool lands totaling 47 kanals 3 marlas to the appellant on June 27, 1968, subject to payment of Rs.1,520 for redemption of possessory mortgage on the 25 kanals 4 marlas. The appellant deposited the amount on June 30, 1968, and was given possession on September 11, 1968. However, by proceedings dated September 13, 1968, the Collector cancelled the grant without notice, reasoning that the mortgagees had been in possession for over 50 years and could not be dispossessed, and that the property could not be redeemed under the Redemption of Mortgage (Punjab) Act, 1913. Possession was redelivered to the mortgagees on September 21, 1968. The appellant filed Civil Suit No.204 of 1970 challenging the cancellation and seeking possession. The trial court decreed the suit on March 17, 1972, and the first appellate court confirmed. In Regular Second Appeal No.1506/75, the High Court recorded practically all findings in the appellant's favour but reversed the decree for possession on the ground that the mortgage was not redeemed in accordance with the Punjab Act.
Headnote
A) Government Grants - Exclusion of Transfer of Property Act - Section 2 of Government Grants Act, 1895 - Section 2 provides that nothing in Transfer of Property Act, 1882 applies to any grant or transfer of land by or on behalf of Government, and such grant takes effect as if that Act had not been passed. The court reasoned that the conditions of the Nazool land grant were governed by the grant itself and not by the Transfer of Property Act. Held that the Transfer of Property Act had no application to the appellant's grant. (Para 5) B) Government Grants - Overriding Effect of Grant Conditions - Section 3 of Government Grants Act, 1895 - Section 3 makes all provisions, restrictions, conditions and limitations in a government grant valid according to their tenor notwithstanding any rule of law, statute or enactment to the contrary. The court held that this excluded the operation of the Redemption of Mortgage (Punjab) Act, 1913, so the grantee was not required to follow the procedure under that Act. Held that deposit of mortgage amount under the order of grant validly redeemed the mortgage without compliance with the Punjab Act. (Para 5) C) Nazool Land Transfer - Redemption of Mortgaged Nazool Land by Scheduled Caste Allottee - Rule 3-A of Government of Patiala and East Punjab States Union Nazool Lands (Transfer) Rules, 1956 - Rule 3-A states that in case of Nazool lands mortgaged with possession, mortgagors' rights be transferred to Scheduled Castes societies or individual members where land is below ten acres, and the grantee is treated as mortgagor with right of redemption; the mortgage amount is deemed equal to sale price if it exceeds the government price, otherwise difference is paid to government and mortgage money to mortgagee. The court found the grant to appellant valid as the land was below ten acres and appellant deposited Rs.1,520 as directed. Held that the appellant obtained a valid right to redeem the mortgage. (Paras 3-4) D) Limitation - Redemption of Mortgage by State and Grantee - Limitation Act, 1963, Section 30; Limitation Act, 1918; Limitation Amendment Act, 1969 - The old Limitation Act prescribed 60 years for State to redeem mortgage, the 1963 Act prescribed 30 years, and Section 30 with amendment Act 10 of 1969 extended the period to seven years from January 1, 1964, up to 1971. Since the grant was made and amount deposited on June 30, 1968, the court held the redemption was within limitation. Held that the grantee's deposit lawfully redeemed the mortgage within the extended period. (Para 5) E) Possession and Relief - Restoration of Possession - Government Grants Act, 1895, Section 3 and Nazool Lands (Transfer) Rules, 1956, Rule 3-A - The High Court rejected possession on ground that mortgage was not redeemed in accordance with Punjab Act, but the Supreme Court found that the procedure was not required. The court set aside the High Court's judgment and decree, and confirmed the trial court's decree as prayed. Held that the appellant was entitled to possession of the Nazool land and costs throughout. (Paras 5-6)
Issue of Consideration
Whether the Redemption of Mortgage (Punjab) Act, 1913 applied to redemption of possessory mortgage of Nazool land; Whether Section 3 of Government Grants Act, 1895 excluded operation of the Punjab Act and relieved the grantee from following its procedure; Whether the High Court was right in refusing relief of possession to the appellant who deposited mortgage money as per grant conditions
Final Decision
Appeal allowed; judgment and decree of the High Court set aside; trial court's decree confirmed as prayed for; costs throughout awarded to appellant.
Law Points
- Government Grants Act
- 1895 Section 2 excludes Transfer of Property Act
- 1882 for government grants
- Section 3 of Government Grants Act
- 1895 validates grant conditions notwithstanding any rule of law
- statute or enactment to contrary
- including Redemption of Mortgage (Punjab) Act
- 1913
- Rule 3-A of Nazool Lands (Transfer) Rules
- 1956 confers right of redemption on Scheduled Caste grantee
- Limitation Act
- 1963 read with Section 30 and amendment Act 10 of 1969 extends redemption period to 1971
- Socio-economic justice under Preamble and Article 46 of Constitution
